cbditr2q13_6k.htm - Generated by SEC Publisher for SEC Filing

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of July, 2013

           Brazilian Distribution Company           
(Translation of Registrant’s Name Into English)

Av. Brigadeiro Luiz Antonio,
3142 São Paulo, SP 01402-901
     Brazil     
(Address of Principal Executive Offices)

        (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F)

Form 20-F   X   Form 40-F       

        (Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (1)):

Yes ___ No   X  

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (7)):

Yes ___ No   X  

        (Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

Yes ___ No   X  


 
 

 

 

(Convenience Translation into English from the

Original Previously Issued in Portuguese)

 

 

 

 

Companhia Brasileira de Distribuição

Individual and Consolidated Interim

Financial Information for the

Quarter Ended June 30, 2013 and

Report on Review of Interim Financial

Information

 

Deloitte Touche Tohmatsu Auditores Independentes

 

 

Page 0 of 117


 
 

Deloitte Touche Tohmatsu

 

(Convenience Translation into English from the Original Previously Issued in Portuguese)

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

To the Shareholders, Board of Directors and Management of

Companhia Brasileira de Distribuição

São Paulo - SP

Introduction

We have reviewed the accompanying individual and consolidated interim financial information of Companhia Brasileira de Distribuição (the “Company”), identified as Company and Consolidated, respectively, included in the Interim Financial Information Form (ITR), for the quarter ended June 30, 2013, which comprises the balance sheet as of June 30, 2013 and the related statements of income and comprehensive income for the three- and six-month periods then ended, and changes in equity and cash flows for the six-month period then ended, including the explanatory notes.

The Company’s Management is responsible for the preparation of the individual interim financial information in accordance with technical pronouncement CPC 21 (R1) - Interim Financial Information and the consolidated interim financial information in accordance with technical pronouncement CPC 21 (R1) and the international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as for the presentation of such information in accordance with the standards established by the Brazilian Securities and Exchange Commission (CVM), applicable to the preparation of the Interim Financial Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international standards on review of interim financial information (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with standards on auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on individual interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual interim financial information included in the Interim Financial Information (ITR) referred to above was not prepared, in all material respects, in accordance with technical pronouncement CPC 21 (R1), applicable to the preparation of the Interim Financial Information (ITR), and presented in accordance with the standards established by the CVM.

 

 


 
 

 

 

Conclusion on consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information included in the Interim Financial Information (ITR) referred to above was not prepared, in all material respects, in accordance with technical pronouncement CPC 21 (R1) and IAS 34, applicable to the preparation of Interim Financial Information (ITR), and presented in accordance with the standards established by the CVM.

Other matters

Statements of value added

We have also reviewed the individual and consolidated statements of value added for the six-
-month period ended June 30, 2013, prepared under the responsibility of the Company’s Management, the presentation of which is required by the standards issued by the CVM applicable to the preparation of Interim Financial Information (ITR) and considered as supplemental information for International Financial Reporting Standards - IFRS, that do not require the presentation of these statements. These statements were subject to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that they were not prepared, in all material respects, in relation to the individual and consolidated interim financial information taken as a whole.

São Paulo, July 19, 2013

DELOITTE TOUCHE TOHMATSU

Edimar Facco

Auditores Independentes

Engagement Partner

 

 

Page 0 of 117


 
 
 

 

 

Quarterly Financial Information

Companhia Brasileira de Distribuição

June 30, 2013

 

 


 
 

 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

Table of Contents

Company Information

 

Capital Breakdown

1

Cash Dividends

2

Individual Quarterly Financial Information

 

Balance Sheet – Assets

3

Balance Sheet – Liabilities

4

Income Statement

6

Comprehensive Income for the Period

7

Statement of Cash Flows

8

Statement of Changes in Shareholders’ Equity

 

1/1/2013 to 6/31/2013

9

1/1/2012 to 6/31/2012

10

Statement of Value Added

11

Consolidated Quarterly Financial Information

 

Balance Sheet - Assets

12

Balance Sheet - Liabilities

13

Income Statement

15

Comprehensive Income for the Period

16

Statement of Cash Flows

17

Statement of Changes in Shareholders’ Equity

 

1/1/2013 to 6/31/2013

18

1/1/2012 to 6/31/2012

19

Statement of Value Added

20

Comments on the Company`s Performance

21

Notes to the Quarterly Financial Information

39

Other Information Deemed as Relevant by the Company

109

Report on Review of Interim Financial Information

111

 

 

 

                                                                                                                                                                                                                                                                                           Page 0


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Company Information / Capital Breakdown

 

Number of Shares

(thousand)

Current Quarter

06/30/2013

 

Paid in Capital

 

 

Common

99,680

 

Preferred

164,612

 

Total

264,292

 

Treasury Shares

 

 

Common

0

 

Preferred

233

 

Total

233

 

 

 

Page 1


 
 

 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

Company Information / Cash Dividends

 

Event

Approval

Type

Date of Payment

Type of Share

Class of Share

Amount per share (Reais/ share)

Board of Directors Meeting

04/25/2013

Dividend

05/16/2013

Common

-

0.11818

Board of Directors Meeting

04/25/2013

Dividend

05/16/2013

Preferred

-

0.13000

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                                                                                                                                                                                           Page 2


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Individual Quarterly Financial Information/ Balance Sheet - Assets

 

R$ (in thousands)

Code

Description

Current Quarter

06/30/2013

Previous Year

12/31/2012

1

Total Assets

20,695,038

22,009,548

1.01

Current Assets

4,029,928

5,783,263

1.01.01

Cash and Cash Equivalents

1,293,087

2,890,331

1.01.03

Accounts Receivable

322,430

513,783

1.01.03.01

Trade Accounts Receivable

296,375

492,642

1.01.03.02

Other Accounts Receivable

26,055

21,141

1.01.04

Inventories

2,022,077

2,132,697

1.01.06

Recoverable Taxes

257,319

193,714

1.01.06.01

Current Recoverable Taxes

257,319

193,714

1.01.07

Prepaid Expenses

71,294

30,096

1.01.08

Other Current Assets

63,721

22,642

1.01.08.01

Noncurrent Assets Held for Sales

8,853

-

1.01.08.03

Other

54,868

22,642

1.02

Noncurrent Assets

16,665,110

16,226,285

1.02.01

Long-term Assets

1,629,955

2,564,888

1.02.01.03

Accounts Receivable

28,105

25,740

1.02.01.03.02

Other Accounts Receivable

28,105

25,740

1.02.01.06

Deferred Taxes

199,351

185,491

1.02.01.06.01

Deferred Income and Social Contribution Taxes

199,351

185,491

1.02.01.07

Prepaid Expenses

41,813

49,064

1.02.01.08

Receivables from Related Parties

602,004

1,538,567

1.02.01.08.02

Receivables from Subsidiaries

536,363

1,470,807

1.02.01.08.03

Receivables from Controlling Shareholders

930

6,258

1.02.01.08.04

Receivables from Other Related Parties

64,711

61,502

1.02.01.09

Other Noncurrent Assets

758,682

766,026

1.02.01.09.04

Recoverable Taxes

233,251

217,651

1.02.01.09.05

Restricted Deposits for Legal Proceeding

525,431

548,375

1.02.02

Investments

8,004,324

6,736,527

1.02.02.01

Investments in Associates

8,004,324

6,736,527

1.02.02.01.02

Investments in Subsidiaries

8,004,324

6,736,527

1.02.03

Property and Equipment, net

5,939,262

5,816,754

1.02.03.01

In Use

5,797,543

5,655,444

1.02.03.02

Leased properties

44,445

50,993

1.02.03.03

In Progress

97,274

110,317

1.02.04

Intangible Assets

1,091,569

1,108,116

1.02.04.01

Intangible Assets

1,091,569

1,108,116

1.02.04.01.02

Intangible Assets

1,091,569

1,108,116

 

 

Page 3


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Individual Quarterly Financial Information /Balance Sheet – Liabilities

 

R$ (in thousands)

Code

Description

Current Quarter

06/30/2013

Previous Year

12/31/2012

2

Total Liabilities

20,695,038

22,009,548

2.01

Current Liabilities

6,962,445

7,097,599

2.01.01

Payroll and Related Charges

311,150

330,884

2.01.01.01

Payroll Liabilities

46,110

45,802

2.01.01.02

Social Security Liabilities

265,040

285,082

2.01.02

Trade Accounts Payable

1,864,423

2,357,379

2.01.02.01

Local Trade Accounts Payable

1,826,202

2,294,756

2.01.02.02

Foreign Trade Accounts Payable

38,221

62,623

2.01.03

Taxes and Contributions Payable

98,873

101,508

2.01.03.01

Federal Tax Liabilities

78,840

76,601

2.01.03.01.01

Income and Social Contribution Tax Payable

55,184

-

2.01.03.01.02

Other (PIS, COFINS, IOF, INSS, Funrural)

23,656

76,601

2.01.03.02

State Tax Liabilities

20,033

24,907

2.01.04

Loans and Financing

2,008,686

1,418,852

2.01.04.01

Loans and Financing

948,584

802,033

2.01.04.01.01

In Local Currency

786,332

228,566

2.01.04.01.02

In Foreign Currency

162,252

573,467

2.01.04.02

Debentures

1,016,277

549,956

2.01.04.03

Financing by Leasing

43,825

66,863

2.01.05

Other Liabilities

2,676,001

2,864,426

2.01.05.01

Related Parties

2,238,440

2,246,087

2.01.05.01.01

Debts with Associated Companies

13,592

4,033

2.01.05.01.02

Debts with Subsidiaries

2,212,683

2,226,298

2.01.05.01.03

Debts with Controlling Shareholders

12,165

15,756

2.01.05.02

Other

437,561

618,339

2.01.05.02.01

Dividends and Interest on Equity Payable

679

166,507

2.01.05.02.04

Utilities

6,625

6,343

2.01.05.02.05

Rent Payable

31,690

33,258

2.01.05.02.06

Advertisement Payable

45,855

42,103

2.01.05.02.07

Pass-through to Third Parties

9,714

10,974

2.01.05.02.08

Financing Related to Acquisition of Real Estate

86,789

88,181

2.01.05.02.09

Taxes Payable in Installments

134,231

147,172

2.01.05.02.11

Other Accounts Payable

121,978

123,801

2.01.06

Provisions

3,312

24,550

2.01.06.02

Other Provisions

3,312

24,550

2.01.06.02.02

Provisions for Restructuring

3,312

24,550

2.02

Noncurrent Liabilities

4,958,663

6,417,224

2.02.01

Loans and Financing

3,353,532

4,903,336

2.02.01.01

Loans and Financing

1,117,424

1,823,159

2.02.01.01.01

In Local Currency

1,117,424

1,662,523

2.02.01.01.02

In Foreign Currency

-

160,636

2.02.01.02

Debentures

2,096,451

2,942,111

2.02.01.03

Financing by Leasing

139,657

138,066

2.02.02

Other Liabilities

1,070,602

1,168,205

2.02.02.02

Other

1,070,602

1,168,205

2.02.02.02.03

Taxes Payable by Installments

1,025,444

1,119,029

2.02.02.02.04

Other Accounts Payable

45,158

49,176

 

 

 

 

 

Page 4


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

 

Individual Quarterly Financial Information /Balance Sheet – Liabilities

 

R$ (in thousands)

 

Code

Description

Current Quarter

06/30/2013

Previous Year

12/31/2012

2.02.04

Provision for Contingencies

534,529

345,683

2.02.04.01

Tax, Social Security, Labor and Civil Provisions

534,529

345,683

2.02.04.01.01

Tax Provisions

295,697

169,056

2.02.04.01.02

Social Security and Labor Provisions

184,762

112,417

2.02.04.01.04

Civil Provisions

54,070

64,210

2.03

Shareholders’ Equity

8,773,930

8,494,725

2.03.01

Paid-in Capital Stock

6,758,931

6,710,035

2.03.02

Capital Reserves

214,087

228,459

2.03.02.02

Special Goodwill Reserve

-

38,025

2.03.02.04

Granted Options

206,689

183,036

2.03.02.07

Capital Reserve

7,398

7,398

2.03.04

Profit Reserves

1,555,358

1,556,231

2.03.04.01

Legal Reserve

300,808

300,808

2.03.04.05

Retention of Profits Reserve

793,993

794,865

2.03.04.10

Expansion Reserve

460,557

460,558

2.03.05

Retained Earnings/ Accumulated Losses

245,554

-

 

 

Page 5


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Individual Quarterly Financial Information / Statement of Income

 

R$ (in thousands)

Code

Description

YTD Current

Year

4/1/2013 to 6/30/2013

YTD Current

Year

1/1/2013 to 6/30/2013

YTD Current

Year

4/1/2012 to 6/30/2012

YTD Current

Year

1/1/2012 to 6/30/2012

3.01

Net Sales from Goods and/or Services

5,010,041

10,154,048

4,572,342

9,140,379

3.02

Cost of Goods Sold and/or Services Sold

(3,658,138)

(7,402,606)

(3,402,860)

(6,790,044)

3.03

Gross Profit

1,351,903

2,751,442

1,169,482

2,350,335

3.04

Operating Income/Expenses

(1,198,701)

(2,197,393)

(753,098)

(1,610,697)

3.04.01

Selling Costs

(770,301)

(1,557,782)

(687,995)

(1,370,265)

3.04.02

General and Administrative

(163,904)

(327,789)

(138,228)

(288,385)

3.04.04

Other Operating Expense

8,002

5,840

(12,601)

(14,854)

3.04.04.01

Income Related to Fixed Assets

(2,064)

(4,226)

(12,603)

(14,856)

3.04.04.02

Other Operating Income

10,066

10,066

2

2

3.04.05

Other Operating Expenses

(330,035)

(449,462)

(85,084)

(161,191)

3.04.05.01

Depreciation/Amortization

(100,116)

(199,743)

(83,571)

(159,678)

3.04.05.03

Other Operating Expenses

(229,919)

(249,719)

(1,567)

(1,567)

3.04.06

Equity Pickup

57,537

131,800

170,810

223,998

3.05

Profit before Net Financial Expenses and Social Contribution Taxes

153,202

554,049

416,384

739,638

3.06

Net Financial Expenses

(135,628)

(242,540)

(107,035)

(223,529)

3.06.01

Financial Revenue

47,045

110,479

92,019

174,344

3.06.02

Financial Expenses

(182,673)

(353,019)

(199,054)

(397,873)

3.07

Earnings Before Income and Social Contribution Taxes

17,574

311,509

309,349

516,109

3.08

Income and Social Contribution Taxes

24,516

(32,844)

(54,700)

(94,868)

3.08.01

Current

5,524

(46,704)

(47,982)

(81,548)

3.08.02

Deferred

18,992

13,860

(6,718)

(13,320)

3.09

Net Income from Continued Operations

42,090

278,665

254,649

421,241

3.11

Net Income for the Period

42,090

278,665

254,649

421,241

3.99

Earnings per Share - (Reais/Share)

 

 

 

 

3.99.01

Earnings Basic per Share

 

 

 

 

3.99.01.01

ON

0.15000

1.00000

0.92000

1.52000

3.99.01.02

PN

0.16000

1.09000

1.01000

1.67000

3.99.02

Earnings Diluted per Share

 

 

 

 

3.99.02.01

ON

0.15000

1.00000

0.92000

1.52000

3.99.02.02

PN

0.16000

1.09000

1.00000

1.66000

 

Page 6


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Individual Quarterly Financial Information / Comprehensive Income for the Period

 

R$ (in thousands)

Code

Description  

YTD Current

Year

4/1/2013 to 6/30/2013

YTD Current

Year

1/1/2013 to 6/30/2013

YTD Previous

Year

4/1/2012 to 6/30/2012

YTD Previous

Year

1/1/2012 to 6/30/2012

4.01

Net Income for the Period

42,090

278,665

254,649

421,241

4.03

Comprehensive Income for the Period

42,090

278,665

254,649

421,241

 

Page 7


 
 

(CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

Individual Quarterly Financial Information /Statement of Cash Flows – Indirect Method

 

R$ (in thousands)

Code

Description

YTD Current

Period

1/1/2013 to 6/30/2013

YTD Previous

Period

1/1/2012 to 6/30/2012

6.01

Net Cash Flow Operating Activities

189,133

(257,576)

6.01.01

Cash Provided by the Operations

914,502

739,829

6.01.01.01

Net Income for the Period

278,665

421,241

6.01.01.02

Deferred Income and Social Contribution Taxes

(13,860)

13,320

6.01.01.03

Results from Disposal of Fixed Assets

4,226

14,856

6.01.01.04

Depreciation/Amortization

217,837

176,006

6.01.01.05

Net Finance Results

269,795

306,458

6.01.01.06

Adjustment to Present Value

126

(3,162)

6.01.01.07

Equity Pickup

(131,800)

(223,998)

6.01.01.08

Provision for Contingencies

185,060

25,050

6.01.01.09

Provision for Disposals and Impairment of Property and Equipment

2,075

(3,304)

6.01.01.10

Share-based Payment

23,653

18,688

6.01.01.11

Allowance for Doubtful Accounts

(81)

(2,599)

6.01.01.12

Gain (Loss) in Equity Interest Dilution

-

8

6.01.01.13

Provision for Obsolescence/Shrinkage

(3,824)

(2,735)

6.01.01.14

Noncurrent expenses

82,000

-

6.01.02

Changes in Assets and Liabilities

(725,369)

(997,405)

6.01.02.01

Accounts Receivable

189,070

168,891

6.01.02.02

Inventories

114,444

151,990

6.01.02.03

Recoverable Taxes

(79,205)

34,551

6.01.02.04

Other Assets

(43,092)

(38,528)

6.01.02.05

Related Parties

(179,412)

(497,466)

6.01.02.06

Restricted Deposits for Legal Proceeding

(66,650)

(58,661)

6.01.02.07

Trade Accounts Payable

(492,956)

(671,000)

6.01.02.08

Payroll Charges

(19,734)

(17,546)

6.01.02.09

Taxes and Social Contributions Payable

(122,599)

(56,970)

6.01.02.10

Other Accounts Payable

(25,235)

(12,666)

6.02

Net Cash Flow Investment Activities

(392,753)

(376,202)

6.02.01

Capital Increase in Subsidiaries

(58,750)

-

6.02.02

Acquisition of Property and Equipment

(319,686)

(377,485)

6.02.03

Increase Intangible Assets

(29,232)

(3,473)

6.02.04

Sales of Property and Equipment

14,915

4,756

6.03

Net Cash Flow Financing Activities

(1,393,624)

993,421

6.03.01

Capital Increase/Decrease

10,871

12,847

6.03.02

Additions

-

1,522,006

6.03.03

Payments

(1,048,119)

(357,564)

6.03.04

Interest Paid

(157,438)

(53,243)

6.03.05

Payment of Dividends

(198,938)

(130,625)

6.05

Net Increase (Decrease) in Cash and Cash Equivalents

(1,597,244)

359,643

6.05.01

Cash and Cash Equivalents at the Beginning of Period

2,890,331

2,328,783

6.05.02

Cash and Cash Equivalents at the End of Period

1,293,087

2,688,426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 8


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

Individual Quarterly Financial Information / Statement of Changes in Shareholders’ Equity – 01/01/2013 to 06/30/2013

 

R$ (in thousands)

 

Code

Description

Paid-in

Capital

Capital Reserves, Options Granted and Treasury Shares

Profit

Reserves

Accumulated Profit/Losses

Shareholders’ Equity

5.01

Opening Balance

6,710,035

228,459

1,556,231

-

8,494,725

5.03

Restated Opening Balance

6,710,035

228,459

1,556,231

-

8,494,725

5.04

Capital Transactions with Shareholders

48,896

(14,372)

-

(33,111)

1,413

5.04.01

Capital Increases

10,871

-

-

-

10,871

5.04.03

Granted Options

-

23,653

-

-

23,653

5.04.06

Dividends

-

-

-

(33,111)

(33,111)

5.04.08

Reserves Capitalization

38,025

(38,025)

-

-

-

5.05

Total Comprehensive Income

-

-

-

278,665

278,665

5.05.01

Net Income for the Period

-

-

-

278,665

278,665

5.06

Internal Changes of Shareholders’ Equity

-

-

(873)

-

(873)

5.06.04

Gain (Loss) in Equity Interest

-

-

(873)

-

(873)

5.07

Closing Balance

6,758,931

214,087

1,555,358

245,554

8,773,930

 

 

Page 9


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

Individual Quarterly Financial Information /Statement of Changes in Shareholders’ Equity – 01/01/2012 to 06/30/2012

R$ (in thousands)

 

Code

Description

Paid-in

Capital

Capital Reserves, Options Granted and Treasury Shares

Profit

Reserves

Accumulated Profit/Losses

Shareholders’ Equity

5.01

Opening Balance

6,129,405

384,342

1,111,526

-

7,265,273

5.03

Restated Opening Balance

6,129,405

384,342

1,111,526

-

7,265,273

5.04

Capital Transactions with Shareholders

572,166

(182,218)

(358,413)

(27,814)

3,721

5.04.01

Capital Increases

12,847

-

-

-

12,847

5.04.03

Granted Options

-

18,688

-

-

18,688

5.04.06

Dividends

-

-

-

(27,814)

(27,814)

5.04.08

Capitalization of Reserve

559,319

(200,906)

(358,413)

-

-

5.05

Total Comprehensive Income

-

-

-

421,241

421,241

5.05.01

Net Income for the Period

-

-

-

421,241

421,241

5.06

Internal Changes of Shareholders’ Equity

-

-

806

-

806

5.06.04

Gain (Loss) in Equity Interest

-

-

806

-

806

5.07

Closing Balance

6,701,571

202,124

753,919

393,427

8,051,041

 

 

 

Page 10


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Individual Quarterly Financial Information /Statement of Value Added

 

R$ (in thousands)

 

Code

Description

YTD Current

Period

1/1/2013 to 6/30/2013

YTD Previous

Period

1/1/2012 to 6/30/2012

7.01

Revenues

10,920,951

10,079,404

7.01.01

Sales of Goods, Products and Services

11,093,125

10,038,602

7.01.02

Other Revenues

(169,321)

41,908

7.01.04

Allowance for/Reversal of Doubtful Accounts

(2,853)

(1,106)

7.02

Raw Materials Acquired from Third Parties

(8,606,776)

(8,024,254)

7.02.01

Costs of Products, Goods and Services Sold

(7,804,514)

(7,269,668)

7.02.02

Materials, Energy, Outsourced Services and Other

(802,262)

(754,586)

7.03

Gross Added Value

2,314,175

2,055,150

7.04

Retention

(217,837)

(176,006)

7.04.01

Depreciation and Amortization

(217,837)

(176,006)

7.05

Net Added Value Produced

2,096,338

1,879,144

7.06

Added Value Received in Transfer

242,279

398,342

7.06.01

Equity Pickup

131,800

223,998

7.06.02

Financial Revenue

110,479

174,344

7.07

Total Added Value to Distribute

2,338,617

2,277,486

7.08

Distribution of Added Value

2,338,617

2,277,486

7.08.01

Personnel

1,035,014

849,141

7.08.01.01

Direct Compensation

715,626

588,850

7.08.01.02

Benefits

245,793

193,268

7.08.01.03

Government Severance Indemnity Fund for Employees (FGTS)

62,300

52,442

7.08.01.04

Other

11,295

14,581

7.08.02

Taxes, Fees and Contributions

452,969

425,441

7.08.02.01

Federal

286,257

296,090

7.08.02.02

State

116,329

81,235

7.08.02.03

Municipal

50,383

48,116

7.08.03

Value Distributed to Providers of Capital

571,969

581,663

7.08.03.01

Interest

353,019

397,873

7.08.03.02

Rentals

218,950

183,790

7.08.04

Value Distributed to Shareholders

278,665

421,241

7.08.04.03

Retained Earnings for the Period

278,665

421,241

 

 

Page 11


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

Consolidated Quarterly Financial Information /Balance Sheet - Assets

 

R$ (in thousands)

 

Code

Description

 

Current Quarter

06/30/2013

 

Previous Year

12/31/2012

1

Total Assets

33,402,053

34,832,108

1.01

Current Assets

14,909,748

16,680,302

1.01.01

Cash and Cash Equivalents

5,037,251

7,086,251

1.01.02

Financial Investments

23,111

-

1.01.02.01

Financial Investments Measured Fair Value

23,111

-

1.01.02.01.03

Marketable Securities

23,111

-

1.01.03

Accounts Receivable

2,728,465

2,867,556

1.01.03.01

Trade Accounts Receivable

2,500,922

2,646,079

1.01.03.02

Other Accounts Receivable

227,543

221,477

1.01.04

Inventories

5,895,910

5,759,648

1.01.06

Recoverable Taxes

957,734

871,021

1.01.06.01

Current Recoverable Taxes

957,734

871,021

1.01.07

Prepaid Expenses

178,515

66,792

1.01.08

Other Current Assets

88,762

29,034

1.01.08.01

Noncurrent Assets for Sales

51,334

-

1.01.08.03

Other

37,428

29,034

1.02

Noncurrent Assets

18,492,305

18,151,806

1.02.01

Long-term Assets

4,715,529

4,693,323

1.02.01.03

Accounts Receivable

663,934

664,896

1.02.01.03.01

Trade Accounts Receivable

98,991

108,499

1.02.01.03.02

Other Accounts Receivable

564,943

556,397

1.02.01.04

Inventories

172,280

172,280

1.02.01.06

Deferred Taxes

1,057,286

1,078,842

1.02.01.06.01

Deferred Income and Social Contribution Taxes

1,057,286

1,078,842

1.02.01.07

Prepaid Expenses

53,631

61,892

1.02.01.08

Receivables from Related Parties

199,471

178,420

1.02.01.08.03

Receivables from Controlling Shareholders

-

6,258

1.02.01.08.04

Receivables from Other Related Parties

199,471

172,162

1.02.01.09

Other Noncurrent Assets

2,568,927

2,542,993

1.02.01.09.04

Recoverable Taxes

1,258,284

1,231,642

1.02.01.09.05

Restricted Deposits for Legal Proceeding

949,628

952,294

1.02.01.09.07

Financial Instruments - Option to Put/Call

361,015

359,057

1.02.02

Investments

373,977

362,429

1.02.02.01

Investments in Associates

373,977

362,429

1.02.02.01.01

Investments in Associates

286,642

275,094

1.02.02.01.04

Other Equity Interest

87,335

87,335

1.02.03

Property and Equipment, net

8,506,243

8,114,498

1.02.03.01

In Use

8,186,348

7,761,760

1.02.03.02

Leased Properties

126,276

148,109

1.02.03.03

In Progress

193,619

204,629

1.02.04

Intangible Assets

4,896,556

4,975,556

1.02.04.01

Intangible Assets

4,896,556

4,975,556

 

 

Page 12


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

Consolidated Quarterly Financial Information /Balance Sheet – Liabilities

 

R$ (in thousands)

Code

Description

 

Current Quarter

06/30/2013

 

Previous Year

12/31/2012

2

Total Liabilities

33,402,053

34,832,108

2.01

Current Liabilities

13,309,534

13,391,267

2.01.01

Payroll and Related Charges

775,765

728,970

2.01.01.01

Payroll Liabilities

138,846

190,127

2.01.01.02

Social Security Liabilities

636,919

538,843

2.01.02

Trade Accounts Payable

5,856,579

6,240,356

2.01.02.01

Local Trade Payable

5,809,133

6,150,533

2.01.02.02

Foreign Trade Payable

47,439

89,823

2.01.03

Taxes and Contribution Payable

585,574

650,761

2.01.03.01

Federal Tax Liabilities

358,005

410,893

2.01.03.01.01

Income and Social Contribution Taxes Payable

96,451

93,759

2.01.03.01.02

Other (PIS, COFINS, IOF, INSS, Funrural)

261,554

317,134

2.01.03.02

State Tax Liabilities

222,816

233,154

2.01.03.03

Municipal Tax Liabilities

4,753

6,714

2.01.04

Loans and Financing

4,575,218

4,211,150

2.01.04.01

Loans and Financing

3,487,712

3,459,652

2.01.04.01.01

In Local Currency

3,284,433

2,754,029

2.01.04.01.02

In Foreign Currency

203,279

705,623

2.01.04.02

Debentures

1,028,751

668,444

2.01.04.03

Financing by Leasing

58,755

83,054

2.01.05

Other Liabilities

1,513,093

1,535,480

2.01.05.01

Related Parties

48,942

80,399

2.01.05.01.01

Debts with Subsidiaries

36,461

64,181

2.01.05.01.03

Debts with Controlling Shareholders

-

16,218

2.01.05.01.04

Debts with Other Related Parties

12,481

-

2.01.05.02

Other

1,464,151

1,455,081

2.01.05.02.01

Dividends

738

168,798

2.01.05.02.04

Utilities

23,409

22,801

2.01.05.02.05

Rent Payable

48,098

51,377

2.01.05.02.06

Advertisement Payable

82,302

112,976

2.01.05.02.07

Pass-through to Third Parties

216,809

224,099

2.01.05.02.08

Financing Related to Acquisition of Real Estate

102,289

88,181

2.01.05.02.09

Deferred Revenues

84,912

92,120

2.01.05.02.10

Taxes Payable in Installments

142,667

155,368

2.01.05.02.11

Companies’ Acquisition

68,250

63,021

2.01.05.02.12

Other Accounts Payable

694,677

476,340

2.01.06

Provisions

3,312

24,550

2.01.06.02

Other Provisions

3,312

24,550

2.01.06.02.02

Provisions for Restructuring

3,312

24,550

2.02

Noncurrent Liabilities

8,671,560

10,372,890

2.02.01

Loans and Financing

4,653,346

6,281,104

2.02.01.01

Loans and Financing

1,601,952

2,377,214

2.02.01.01.01

In Local Currency

1,601,952

2,176,652

2.02.01.01.02

In Foreign Currency

-

200,562

2.02.01.02

Debentures

2,895,991

3,741,353

2.02.01.03

Financing by Leasing

155,403

162,537

2.02.02

Other Liabilities

1,388,189

1,708,384

2.02.02.02

Other

1,388,189

1,708,384

2.02.02.02.03

Taxes Payable by Installments

1,108,691

1,204,543

2.02.02.02.04

Other Accounts Payable

116,236

345,640

2.02.02.02.05

Accounts Payable Related to Acquisition of Companies

163,262

158,201

2.02.03

Deferred Taxes

1,111,016

1,137,376

       

 

 

Page 13


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Consolidated Quarterly Financial Information /Balance Sheet – Liabilities

 

R$ (in thousands)

 

Code

Description

 

Current Quarter

06/30/2013

 

Previous Year

12/31/2012

2.02.03.01

Deferred Income and Social Contribution Taxes

1,111,016

1,137,376

2.02.04

Provisions for Contingencies

1,078,188

774,361

2.02.04.01

Tax, Social Security, Labor and Civil Provisions

1,078,188

774,361

2.02.04.01.01

Tax Provisions

611,965

450,639

2.02.04.01.02

Social Security and Labor Provisions

314,458

190,836

2.02.04.01.04

Civil Provisions

151,765

132,886

2.02.06

Deferred Revenues

440,821

471,665

2.02.06.02

Deferred Revenues

440,821

471,665

2.03

Consolidated Shareholders’ Equity

11,420,959

11,067,951

2.03.01

Paid-in Capital Stock

6,758,931

6,710,035

2.03.02

Capital Reserves

214,087

228,459

2.03.02.02

Special Goodwill Reserve

-

38,025

2.03.02.04

Granted Options

206,689

183,036

2.03.02.07

Capital Reserve

7,398

7,398

2.03.04

Profit Reserves

1,555,358

1,556,231

2.03.04.01

Legal Reserve

300,808

300,808

2.03.04.05

Profit Retention Reserve

793,993

795,865

2.03.04.10

Expansion Reserve

460,557

460,558

2.03.05

Retained Earnings/ Accumulated Losses

245,554

-

2.03.09

Noncontrolling Interest

2,647,029

2,573,226

 

 

Page 14


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

                                                                           

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Consolidated Quarterly Financial Information / Statement of Income

R$ (in thousands)

Code

Description  

YTD Current

Year

4/1/2013 to 6/30/2013

YTD Current

Year

1/1/2013 to 6/30/2013

YTD Previous

Year

4/1/2011 to 6/30/2011

YTD Previous

Year

1/1/2012 to 6/30/2012

3.01

Net Sales from Goods and/or Services

13,382,920

26,765,784

12,037,419

24,184,870

3.02

Cost of Goods Sold and/or Services Sold

(9,832,445)

(19,681,982)

(8,808,171)

(17,711,388)

3.03

Gross Profit

3,550,475

7,083,802

3,229,248

6,473,482

3.04

Operating Income/Expenses

(3,155,099)

(6,039,666)

(2,626,522)

(5,289,153)

3.04.01

Selling Costs

(2,249,187)

(4,536,249)

(2,037,003)

(4,097,631)

3.04.02

General and Administrative

(365,039)

(767,777)

(416,296)

(853,632)

3.04.04

Other Operating Income

(13,706)

(3,026)

22,238

32,994

3.04.04.01

Income Related to Fixed Assets

(8,749)

(13,813)

(9,694)

(2,967)

3.04.04.02

Other Operating Income

(4,957)

10,787

31,932

35,961

3.04.05

Other Operating Expenses

(531,089)

(745,391)

(192,794)

(373,069)

3.04.05.01

Depreciation/Amortization

(195,124)

(390,035)

(177,320)

(351,789)

3.04.05.03

Other Operating Expenses

(335,965)

(355,356)

(15,474)

(21,280)

3.04.06

Equity Pickup

3,922

12,777

(2,667)

2,185

3.05

Profit before Net Financial Expenses and Social Contribution Taxes

395,376

1,044,136

602,726

1,184,329

3.06

Net finance expenses

(299,658)

(554,013)

(284,728)

(620,478)

3.06.01

Financial Revenue

128,048

270,674

151,013

296,637

3.06.02

Financial Expenses

(427,706)

(824,687)

(435,741)

(917,115)

3.07

Earnings Before Income and Social Contribution Taxes

95,718

490,123

317,998

563,851

3.08

Income and Social Contribution Taxes

(18,751)

(137,888)

(72,714)

(156,396)

3.08.01

Current

(54,106)

(142,692)

(50,905)

(102,986)

3.08.02

Deferred

35,355

4,804

(21,809)

(53,410)

3.09

Net Income from Continued Operations

76,967

352,235

245,284

407,455

3.11

Consolidated Net Income/Loss for the Period

76,967

352,235

245,284

407,455

3.11.01

Attributed to Partners of Parent Company

42,090

278,665

254,649

421,241

3.11.02

Attributed to Noncontrolling Shareholders

34,877

73,570

(9,365)

(13,786)

3.99

Earnings per Share - (Reais / Share)

 

 

 

 

3.99.01

Earnings Basic per Share

 

 

 

 

3.99.01.01

ON

0.15000

1.00000

0.92000

1.52000

3.99.01.02

PN

0.16000

1.09000

1.01000

1.67000

3.99.02

Earnings Diluted per Share

 

 

 

 

3.99.02.01

ON

0.15000

1.00000

0.92000

1.52000

3.99.02.02

PN

0.16000

1.09000

1.00000

1.66000

 

 

Page 15


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

                                                                           

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Consolidated Quarterly Financial Information / Comprehensive Income for the Period

 

R$ (in thousands)

Code

Description  

YTD Current

Year

4/1/2013 to 6/30/2013

YTD Current

Year

1/1/2013 to 6/30/2013

YTD Previous

Year

4/1/2012 to 6/30/2012

YTD Previous

Year

1/1/2012 to 6/30/2012

4.01

Net Income for the Period

76,967

352,235

245,284

407,455

4.03

Comprehensive Income for the Period

76,967

352,235

245,284

407,455

4.03.01

Attributed to Controlling Shareholders

42,090

278,665

254,649

421,241

4.03.02

Attributed to Non-Controlling Shareholders

34,877

73,570

(9,365)

(13,786)

 

 

Page 16


 
 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

                                                                           

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Consolidated Quarterly Financial Information /Statement of Cash Flows – Indirect Method

 

R$ (in thousands)

 

Code

Description

YTD Current

Period

1/1/2013 to 6/30/2013

YTD Previous

Period

1/1/2012 to 6/30/2012

6.01

Net Cash Flow Operating Activities

602,187

60,609

6.01.01

Cash Provided by the Operations

1,719,795

1,548,106

6.01.01.01

Net Income for the Period

352,235

407,455

6.01.01.02

Deferred Income and Social Contribution Taxes

(4,804)

53,410

6.01.01.03

Results from Disposal of Fixed Assets

13,813

2,957

6.01.01.04

Depreciation/Amortization

426,701

392,170

6.01.01.05

Net Finance Results

464,450

562,522

6.01.01.06

Adjustment to Present Value

1,724

(587)

6.01.01.07

Equity Pickup

(12,777)

(2,185)

6.01.01.08

Payment Provision for Contingencies

287,614

66,745

6.01.01.09

Provision for Disposals and Impairment of Property and Equipment

2,773

(308)

6.01.01.10

Share-Based payment

23,653

18,688

6.01.01.11

Allowance for Doubtful Accounts

23,329

195,050

6.01.01.12

Gain (Loss) in Equity Interest Dilution

-

(26,863)

6.01.01.13

Barter Revenue

-

(96,810)

6.01.01.14

Provision for Obsolescence/Shrinkage

(15,840)

(26,863)

6.01.01.15

Deferred Revenue

(30,844)

-

6.01.01.16

Noncurrent expenses

187,768

-

6.01.02

Changes in Assets and Liabilities

(1,117,608)

(1,487,497)

6.01.02.01

Accounts Receivable

115,895

298,569

6.01.02.02

Inventories

(136,172)

571,952

6.01.02.03

Recoverable Taxes

(146,375)

(214,935)

6.01.02.04

Financial instruments

-

(51,048)

6.01.02.05

Other Assets

(110,627)

(82,327)

6.01.02.06

Related Parties

(82,938)

(59,356)

6.01.02.07

Restricted Deposits for Legal Proceeding

(115,693)

(96,203)

6.01.02.08

Trade Accounts Payable

(370,827)

(1,652,536)

6.01.02.09

Payroll Charges

46,795

77,728

6.01.02.10

Taxes and Social Contributions Payable

(155,452)

(200,422)

6.01.02.11

Other Accounts Payable

(99,237)

(78,919)

6.01.02.12

Financial Investments

(22,977)

-

6.02

Net Cash Flow Investing Activities

(774,496)

(544,125)

6.02.01

Companies Acquisition

8,192

3,149

6.02.02

Capital Increase in Subsidiaries

-

53

6.02.03

Acquisition of Property and Equipment

(768,278)

(554,674)

6.02.04

Increase Intangible Assets

(58,649)

(30,301)

6.02.05

Sales of Property and Equipment

44,239

37,477

6.02.06

Net Cash Acquisition

-

171

6.03

Net Cash flow Financing Activities

(1,876,691)

986,944

6.03.01

Capital Increase/Decrease

10,871

12,847

6.03.02

Additions

2,408,397

4,566,907

6.03.03

Payments

(3,782,204)

(3,326,062)

6.03.04

Interest Paid

(312,584)

(136,123)

6.03.05

Payment of Dividends

(201,171)

(130,625)

6.05

Net Increase (Decrease) in Cash and Cash Equivalents

(2,049,000)

503,428

6.05.01

Cash and Cash Equivalents at the Beginning of Period

7,086,251

4,969,955

6.05.02

Cash and Cash Equivalents at the End of Period

5,037,251

5,473,383

 

 

Page 17


 
 

(FREETRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Consolidated Quarterly Financial Information /Statement of Changes in Shareholders’ Equity –01/01/2013 to 06/30/2013

 

R$ (in thousands)

Code

Description

Paid-in

Capital

Capital Reserves, Options Granted and Treasury Shares

Profit

Reserves

Accumulated Profit/Losses

Other Comprehensive Income

Shareholders’ Equity

Noncontrolling Interest

Consolidated

Shareholders’

Equity

5.01

Opening Balance

6,710,035

228,459

1,556,231

-

-

8,494,725

2,573,226

11,067,951

5.03

Restated Opening Balance

6,710,035

228,459

1,556,231

-

-

8,494,725

2,573,226

11,067,951

5.04

Capital Transactions with Shareholders

48,896

(14,372)

-

(33,111)

-

1,413

-

1,413

5.04.01

Capital Increases

10,871

-

-

-

-

10,871

-

10,871

5.04.03

Granted Options

-

23,653

-

-

-

23,653

-

23,653

5.04.06

Dividends

-

-

-

(33,111)

-

(33,311)

-

(33,311)

5.04.08

Capitalization of Reserve

38,025

(38,025)

-

-

-

-

-

-

5.05

Total Comprehensive Income

-

-

-

(278,665)

-

278,665

73,570

352,235

5.05.01

Net Income for the Period

-

-

-

(278,665)

-

278,665

73,570

352,235

5.06

Internal Changes of Shareholders’ Equity

-

-

(873)

-

-

(873)

233

(640)

5.06.04

Gain (Loss) in Equity Interest

-

-

(873)

-

-

(873)

233

(640)

5.07

Closing Balance

6,758,931

214,087

1,555,358

245,554

-

8,773,930

2,647,029

11,420,959

 

 

Page 18


 
 

(FREETRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Consolidated Quarterly Financial Information /Statement of Changes in Shareholders’ Equity – 01/01/2012 to 06/30/2012

 

R$ (in thousands)

Code

Description

Paid-in

Capital

Capital Reserves, Options Granted and Treasury Shares

Profit

Reserves

Accumulated Profit/Losses

Other Comprehensive Income

Shareholders’ Equity

Noncontrolling Interest

Consolidated

Shareholders’

Equity

5.01

Opening Balance

6,129,405

384,342

1,111,526

-

-

7,625,273

2,469,152

10,094,425

5.03

Restated Opening Balance

6,129,405

384,342

1,111,526

-

-

7,625,273

2,469,152

10,094,425

5.04

Capital Transactions with Shareholders

572,166

(182,218)

(358,413)

(27,814)

-

3,721

-

3,721

5.04.01

Capital Increase

12,847

-

-

-

-

12,847

-

12,847

5.04.03

Granted Options

-

18,688

-

-

-

18,688

-

18,688

5.04.06

Dividends

-

-

-

(27,814)

-

(27,814)

-

(27,814)

5.04.08

Capitalization of Reserves

559,319

(200,906)

(358,413)

-

-

-

-

-

5.05

Total Comprehensive Income

-

-

-

421,241

-

421,241

(13,786)

407,455

5.05.01

Net Income for the Period

-

-

-

421,241

-

421,241

(13,786)

407,455

5.06

Internal Changes of Shareholders’ Equity

-

-

806

-

-

806

371

1,177

5.06.04

Gain (Loss) in Equity Interest

-

-

806

-

-

806

371

1,177

5.07

Closing Balance

6,701,571

202,124

753,919

393,427

-

8,051,041

2,455,737

10,506,778

 

 

 

 

 

Page 19


 
 

 

(FREE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE)

 

ITR –– Quarterly Financial Information – June 30, 2013 – COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO 

Version: 1

 

 

Consolidated Quarterly Financial Information /Statement of Value Added

 

R$ (in thousands)

Code

Description

YTD Current

Period

1/1/2013 to 6/30/2013

YTD Previous

Period

1/1/2012 to 6/30/2012

7.01

Revenues

29,498,553

27,145,572

7.01.01

Sales of Goods, Products and Services

29,903,610

27,171,747

7.01.02

Other Revenues

(188,639)

105,082

7.01.04

Allowance for/Reversal of Doubtful Accounts

(216,418)

(131,257)

7.02

Raw Materials Acquired from Third Parties

(22,717,171)

(20,563,143)

7.02.01

Costs of Products, Goods and Services Sold

(20,190,341)

(18,142,776)

7.02.02

Materials, Energy, Outsourced Services and Other

(2,526,830)

(2,420,367)

7.03

Gross Added Value

6,781,382

6,582,429

7.04

Retention

(426,701)

(392,170)

7.04.01

Depreciation and Amortization

(426,701)

(392,170)

7.05

Net Added Value Produced

6,354,681

6,190,259

7.06

Added Value Received in Transfer

283,451

298,822

7.06.01

Equity Pickup

12,777

2,185

7.06.02

Financial Revenue

270,674

296,637

7.07

Total Added Value to Distribute

6,638,132

6,489,081

7.08

Distribution of Added Value

6,638,132

6,489,081

7.08.01

Personnel

2,772,991

2,754,785

7.08.01.01

Direct Compensation

2,021,319

1,871,519

7.08.01.02

Benefits

496,144

429,850

7.08.01.03

Government Severance Indemnity Fund for Employees (FGTS)

179,529

180,470

7.08.01.04

Other

75,999

272,946

7.08.01.04.01

Interest

75,999

272,946

7.08.02

Taxes, Fees and Contributions

2,027,820

1,862,421

7.08.02.01

Federal

1,219,478

1,145,310

7.08.02.02

State

698,832

603,830

7.08.02.03

Municipal

109,510

113,281

7.08.03

Value Distributed to Providers of Capital

1,485,086

1,464,420

7.08.03.01

Interest

824,687

917,115

7.08.03.02

Rentals

660,399

547,305

7.08.04

Value Distributed to Shareholders

352,235

407,455

7.08.04.03

Retained Earnings/ Accumulated Losses for the Period

278,665

421,241

7.08.04.04

Noncontrolling Interest in Retained Earnings

73,570

(13,786)

 

Page 20


 

 

 

      2Q13 Earnings Release

Net income up 35.8% to R$ 327 million

 

São Paulo, Brazil, July 23, 2013 - Grupo Pão de Açúcar [BM&FBOVESPA: PCAR4 (PN); NYSE: CBD] and Via Varejo [BM&FBOVESPA: VVAR3] announce their results for the second quarter of 2013 (2Q13). The results are presented in the segments as follows: GPA Food, formed by supermarkets (Pão de Açúcar, Extra Supermercado and PA Delivery), hypermarkets (Extra Hiper), neighborhood stores (Minimercado Extra), cash-and-carry stores (Assaí), GPA Malls & Properties, gas stations and drugstores; and GPA Consolidated, formed by GPA Food and Viavarejo (Casas Bahia and Pontofrio brick-and-mortar stores) and Nova Pontocom's e-commerce operations: Extra.com.br, PontoFrio.com.br, Casasbahia.com.br, Barateiro.com.br, PartiuViagens.com.br, e-Plataforma and Atacado Pontofrio). More information on the results of the subsidiary Via Varejo S.A. can be found in its respective earnings release disclosed on this date.

 

GPA Consolidated

Gross sales revenue reached R$ 14.919 billion

 

§       Gross sales revenue totaled R$ 14.919 billion, up 10.4% over 2Q12. In 1H13, excluding the effect of early Easter, sales increased by 10.1%; 
 

§     33 new stores added 29,000 square meters to sales area in the period. Sales area increased 2.2% year-to-date; 
 

§        Same-store growth reached 7.3%, benefited by Viavarejo’s same-store growth increase;
 

§        EBITDA at R$ 609 million, impacted by Other Operating Expenses and Revenues amounting to R$ 350 million in the period. The EBITDA adjusted by these effects increased 20.6%, with margin at 7.2%;
 

§      Sales, general and administrative expenses as percentage of net sales revenue decline in all operations. In GPA Consolidated, it declined from 20.5% to 19.5% in 2Q13.
 

GPA Food

Gross sales revenue up 8.8% in 2Q13, with adjusted EBITDA margin at 7.0%

          

§        Gross sales revenue, excluding real estate projects, totaled R$ 7.984 billion, up 8.8% over 2Q12;
 

§        Increase in expansion pace: 29 new stores in 2Q13. Sales area increased 2.9% year-to-date; 
 

§        Same-store growth of 4.8% in food categories, due to the early Easter, which was in 1Q13;
 

§     EBITDA at R$ 253 million, impacted by Other Operating Expenses and Revenues of R$ 260 million in the period. EBITDA adjusted by these effects would be R$ 512 million, with EBITDA margin at 7.0%.

 

  GPA Consolidated GPA Food (ex. real estate projects) Viavarejo
(R$ million)(1) 2Q13 2Q12 Δ   1H13 1H12 Δ   2Q13 2Q12 Δ   2Q13 2Q12 Δ
 
Gross Sales Revenue 14,919 13,512 10.4% 29,904 27,172 10.1% 7,984 7,339 8.8% 6,936 6,075 14.2%
Net Sales Revenue 13,383 12,037 11.2% 26,766 24,185 10.7% 7,321 6,622 10.6% 6,062 5,318 14.0%
Gross Profit 3,550 3,229 9.9% 7,084 6,473 9.4% 1,812 1,693 7.0% 1,739 1,438 20.9%
  Gross Margin 26.5% 26.8% -0.3 p.p. 26.5% 26.8% -0.3 p.p. 24.7% 25.6% -0.9 p.p. 28.7% 27.0% 1.7 p.p.
EBITDA 609 801 -24.0% 1,471 1,577 -6.7% 253 483 -47.7% 356 220 61.5%
  EBITDA Margin(2) 4.5% 6.7% -2.2 p.p. 5.5% 6.5% -1.0 p.p. 3.4% 7.3% -3.9 p.p. 5.9% 4.1% 1.8 p.p.
Adjusted EBITDA 958 794 20.6% 1,829 1,565 16.9% 512 474 8.1% 446 222 100.5%
  Adjusted EBITDA Margin 7.2% 6.6% 0.6 p.p. 6.8% 6.5% 0.3 p.p. 7.0% 7.2% -0.2 p.p. 7.4% 4.2% 3.2 p.p.
Net Financial Revenue (Expenses) (300) (285) 5.2% (554) (620) -10.7% (129) (121) 7.0% (170) (164) 3.9%
% of net sales revenue 2.2% 2.4% -0.2 p.p. 2.1% 2.6% -0.5 p.p. 1.8% 1.8% 0.0 p.p. 2.8% 3.1% -0.3 p.p.
Company's net profit 77 245 -68.6% 352 407 -13.6% (18) 142 -113.0% 95 5 1667.4%
  Net Margin 0.6% 2.0% -1.4 p.p. 1.3% 1.7% -0.4 p.p. -0.3% 2.1% -2.4 p.p. 1.6% 0.1% 1.5 p.p.
Adjusted Net Income 327 241 35.8% 610 400 52.6% 172 136 26.6% 155 7 2112.5%
Adjusted Net Margin 2.4% 2.0% 0.4 p.p. 2.3% 1.7% 0.6 p.p. 2.4% 2.1% 0.3 p.p. 2.6% 0.1% 2.5 p.p.
(1) Totals and percentage changes are rounded off and all margins were calculated as percentage of net sales revenue.
(2) Earnings before Interest, Taxes, Depreciation, Amortization

 

 

 

Page 21


 

 

 

For better comparability of results, the following comments do not include the results of the real estate projects implemented by the Company in 2Q12 in partnership with construction companies, which generated non-recurring revenue of R$ 98 million.

 

Sales Performance

 

  Gross Sales Revenue Net Sales Revenue
(R$ million) 2Q13 2Q12 Δ 1H13 1H12 Δ 2Q13 2Q12 Δ 1H13 1H12 Δ
GPA Consolidated (ex-real estate projects ) 14,919 13,414 11.2% 29,904 27,074 10.5% 13,383 11,939 12.1% 26,766 24,087 11.1%
GPA Food (ex-real estate projects) 7,984 7,339 8.8% 16,132 14,710 9.7% 7,321 6,622 10.6% 14,703 13,278 10.7%

Retail

6,425 6,197 3.7% 13,147 12,436 5.7% 5,887 5,579 5.5% 11,965 11,200 6.8%

Cash and Carry

1,558 1,142 36.4% 2,985 2,273 31.3% 1,434 1,043 37.5% 2,738 2,078 31.8%
GPA Non Food 6,936 6,075 14.2% 13,771 12,364 11.4% 6,062 5,318 14.0% 12,062 10,809 11.6%

Viavarejo - bricks and mortar stores

5,873 5,236 12.2% 11,757 10,633 10.6% 5,113 4,552 12.3% 10,256 9,232 11.1%

Nova Pontocom

1,062 840 26.5% 2,014 1,731 16.4% 949 765 24.1% 1,806 1,577 14.6%
Real Estate Projects - 98 - - 98 - - 98 - - 98 -

 

 

Gross 'Same-Store' Sales Revenue
  2Q13 1H13
GPA Consolidated 7.3% 7.0%
Food 4.8% 7.2%
Non-food 9.3% 6.8%

 

Consolidated gross sales revenue totaled R$14.919 billion, up 11.2% over 2Q12. GPA Food’s gross revenue increased 8.8% and Viavarejo’s increased 14.2%.

The Company’s focus on expansion enabled the inauguration of 33 new stores in the quarter, of which 23 Minimercado Extra, four Casas Bahia three Assaí, two Pão de Açúcar and one drugstore. During the quarter, over 29,000 square meters were added to the GPA Consolidated’s sales area, which represents an increase of 1.0% over the end of March. From January to June, the area growth was at 2.2%. The company reaffirms its commitment to the area expansion guidance of above 6% for GPA Food and between 2% and 3% for Viavarejo for 2013. Such guidance does not consider the settlement agreement (Termo de Compromisso de Desempenho ‐ TCD) with Brazil’s antitrust agency CADE (Conselho Administrativo de Defesa Econômica) – more information about TCD on page 7. Another highlight in the quarter was the performance of Nova Pontocom, which once again posted double-digit growth.

In 1H13, excluding the effect of early Easter, gross sales totaled R$ 29.904 billion, up 10.5% over 1H12.

Same-store sales increased 7.3% in 2Q13, driven by the accelerated same-store growth of Viavarejo in the past quarters.

 

 

Page 22


 

 

Sales of the Group’s food categories posted same-store growth of 4.8%, impacted by the early Easter in 2013, which was celebrated in the first quarter. The Company estimates that the impact of the early Easter in the sales growth, in 2Q13, was approximately 300 basis points. Considering the calendar effect, same-store sales would increase by 7.8%, above inflation. Considering the six-month period, in which the calendar effect is not valid, same-store growth was 7.2%, which represents a real growth of 0.5% i.e. deflated by the IPCA inflation index for the last 12 months.

Minimercado Extra and Assaí banners posted double-digit growth in same-store sales.

Sales of the Group’s non-food categories, which include Viavarejo and the non-food categories of Extra Hiper, posted same-store growth of 9.3%, spurred by Viavarejo’s performance. The bricks-and-mortar stores posted ‘same‐store’ sales growth of 9.5%, fueled by the effective marketing campaigns combined with the commercial strategy, in addition to sales related to Mother’s Day. Nova Pontocom posted growth of 26.5% in the quarter, thanks to a price repositioning strategy in its different banners. In real terms, considering the inflation in the electronics, furniture and mattress categories in the past 12 months, as released by the Brazilian Institute of Geography and Statistics (IBGE), weighted by the product mix of the bricks-and-mortar stores and Nova Pontocom, gross revenue sales grew 8.7%.

In the second half of June, popular uprisings in Brazil forced the Company to shut certain stores for some hours at specific periods. The Management believes that the impacts on sales and other expenses were minor and did not significantly affect the 2Q13 performance.

Grupo Pão de Açúcar, through its banners Casas Bahia, Pontofrio and Extra Hiper, participate in the federal government’s ”Minha Casa Melhor” program, launched in June, which offer the beneficiaries of the “Minha Casa, Minha Vida” program a special credit facility to acquire furniture and home appliances. All of the Company’s businesses that sell the items included in the product basket subsidized by the credit facility are committed to meeting the demand of these new consumers.

 

Page 23


 

 

Operating Performance

 

  GPA Consolidated (ex. real estate projects)
  2Q13 2Q12 Δ 1H13 1H12 Δ
Gross Sales Revenue 14,919 13,414 11.2% 29,904 27,074 10.5%
Net Sales Revenue 13,383 11,939 12.1% 26,766 24,087 11.1%
Gross Profit 3,550 3,131 13.4% 7,084 6,375 11.1%
   Gross Margin 26.5% 26.2% 0.3 p.p. 26.5% 26.5% 0.0 p.p.
   Selling Expenses (2,249) (2,037) 10.4% (4,536) (4,098) 10.7%
   General and Administrative Expenses (365) (416) -12.3% (768) (854) -10.1%
   Equity Income 4 (3) - 13 2 484.7%
   Other Operating Revenue (Expenses) (350) 7 - (358) 12 -
Total Operating Expenses (2,960) (2,449) 20.9% (5,650) (4,937) 14.4%
   % of Net Sales Revenue 22.1% 20.5% 1.6 p.p. 21.1% 20.5% 0.6 p.p.
Depreciation (Logistic) 18 21 -14.1% 37 40 -9.2%
EBITDA (1) (2) 609 703 -13.4% 1,471 1,478 -0.5%
   EBITDA Margin 4.5% 5.9% -1.4 p.p. 5.5% 6.1% -0.6 p.p.
Adjusted EBITDA (3) 958 696 37.6% 1,829 1,467 24.7%
   Adjusted EBITDA Margin 7.2% 5.8% 1.4 p.p. 6.8% 6.1% 0.7 p.p.

 

(1)      As of 4Q12, the results of Equity Income and Other Operating Income (Expenses) were included along with Total Operating Expenses in the calculation of EBITDA. Thus, the calculation of EBITDA complies with Instruction 527 dated October 4, 2012, issued by the Securities and Exchange Commission of Brazil (CVM).

(2)      As from 1Q13, the depreciation recognized in the cost of goods sold, essentially consisting of the depreciation of distribution centers, began to be specified in the calculation of EBITDA.

(3)      The explanation is available on page 11.

The Company’s gross margin increased by 30 basis points, reflecting the price repositioning in food retail, which was supported by a reduction in expenses. As in 1Q13, Assaí banner adopted more competitive prices in the new stores, in line with the banner’s strategy to generate traffic.

In terms of operational efficiency gains, the highlight was the reduction in the ratio between Viavarejo’s selling, general and administrative expenses and net revenue, from 23.1% in 2Q12 to 21.5% in 2Q13, due to the gains of synergy from the Productivity Plan and the higher rationalization of staff, marketing and IT expenses.

In 2Q13, the Company incurred in Other Operating Expenses and Revenues of R$ 350 million. It is worth mentioning the provisions for tax risks (R$ 163 million), effects related to the association between Pontofrio and Casas Bahia (*) (R$ 67 million), restructuring expenses and results from fixed assets (R$ 51 milion) and provisions related to labor claims and others (R$ 69 million).

EBITDA totaled R$ 609 million, due to the recognition of Other Operating Expenses and Revenues, as mentioned above. Adjusted EBITDA, which excludes such Other Operating Expenses and Revenues, would be R$ 958 million, up 37.6%, with ajusted EBITDA margin 7.2%.

In Viavarejo, the further gains of synergies and the implementation of new processes and elimination of operating expenses resulted in an EBITDA growth of 61.5%.

The six-month analysis, which excludes the calendar effect of Easter and the expense mentioned above, EBITDA increased by 24.7%, to R$ 1.829 billion.

(*) Refers to the effects related to the project by external consultants especially hired to analyze the accounting entries related to the association between Pontofrio and Casas Bahia.

 

 

Page 24


 

 

 

 

GPA Food (Retail and Cash-and-carry stores)

 

Food Retail (Extra and Pão de Açúcar)

 

  Food Retail (ex. real estate projects)
  2Q13 2Q12 Δ 1H13 1H12 Δ
Gross Sales Revenue 6,425 6,197 3.7% 13,147 12,436 5.7%
Net Sales Revenue 5,887 5,579 5.5% 11,965 11,200 6.8%
Gross Profit 1,611 1,535 5.0% 3,305 3,106 6.4%
   Gross Margin 27.4% 27.5% -0.1 p.p. 27.6% 27.7% -0.1 p.p.
   Selling Expenses (974) (945) 3.1% (1,987) (1,883) 5.6%
   General and Administrative Expenses (186) (170) 9.2% (379) (353) 7.5%
   Equity Income 3 (2) - 10 2 380.2%
   Other Operating Revenue (Expenses) (261) 8 - (284) (2) -
Total Operating Expenses (1,418) (1,109) 27.9% (2,641) (2,235) 18.1%
   % of Net Sales Revenue 24.1% 19.9% 4.2 p.p. 22.1% 20.0% 2.1 p.p.
Depreciation (Logistic) 11 10 4.7% 21 19 7.3%
EBITDA 204 436 -53.3% 685 890 -23.0%
   EBITDA Margin 3.5% 7.8% -4.3 p.p. 5.7% 7.9% -2.2 p.p.
Adjusted EBITDA 465 428 8.6% 969 892 8.7%
   Adjusted EBITDA Margin 7.9% 7.7% 0.2 p.p. 8.1% 8.0% 0.1 p.p.

 

Gross margin decreased by 10 basis points, while selling, general and administrative expenses accounted for 19.7% of net sales revenue, down 30 basis points.

EBITDA was impacted by Other Operating Expenses and Revenues totaling R$ 261.0 million. EBITDA totaled R$ 204 million, down 53.3% over 2Q12. EBITDA adjusted by the above-mentioned effect was R$ 465 million, with margin at 7.9%. Compared to 2Q12, growth would be 8.6%, higher than revenue growth.

Management expects futher reductions on operating expenses over the year which may be converted into lower prices for consumers to increase store traffic. With such strategy, the Company’s market share is expected to increase over the next quarters.

 

GPA Malls & Properties launched a new brand in June, Conviva, which is based on the neighborhood malls concept and aims to fill the gap between street stores and large commercial centers. Its first project, Conviva Américas, is anchored by an innovative concept of a Pão de Açúcar store, in addition to major sports, baby and gym retail chains, and another 35 satellite stores, including a food court. Conviva attracts customer traffic for the Pão de Açúcar store while diversies the group’s revenue with rental revenue. The project has a gross leasable area of 12,500 square meters. The Company expects to deliver at least 35,000 square meters of new gross leasable area in commercial centers this year.

 

 

 

Page 25


 

Cash-and-carry stores (Assaí)

 

  Cash and Carry
  2Q13 2Q12 Δ 1H13 1H12 Δ
Gross Sales Revenue 1,558 1,142 36.4% 2,985 2,273 31.3%
Net Sales Revenue 1,434 1,043 37.5% 2,738 2,078 31.8%
Gross Profit 200 158 26.5% 375 304 23.5%
   Gross Margin 14.0% 15.2% -1.2 p.p. 13.7% 14.6% -0.9 p.p.
   Selling Expenses (136) (102) 32.6% (259) (204) 27.1%
   General and Administrative Expenses (17) (10) 66.4% (33) (21) 57.7%
   Other Operating Revenue (Expenses) 1.2 0.8 48.8% 1.3 0.3 288.3%
Total Operating Expenses (152) (112) 35.6% (291) (224) 29.6%
   % of Net Sales Revenue 10.6% 10.7% -0.1 p.p. 10.6% 10.8% -0.2 p.p.
Depreciation (Logistic) 0.01 0.05 -76.8% 0.08 0.07 18.5%
EBITDA 49 47 4.6% 85 80 6.5%
   EBITDA Margin 3.4% 4.5% -1.1 p.p. 3.1% 3.8% -0.7 p.p.
Adjusted EBITDA 48 46 3.8% 84 79 5.4%
   Adjusted EBITDA Margin 3.3% 4.4% -1.1 p.p. 3.1% 3.8% -0.7 p.p.

 

Gross sales revenue totaled R$ 1.558 billion, up 36.4% over 2Q12, while EBITDA increased 4.6%, with margin at 3.4%. The first stores launched in new states demand more investments in marketing and more competitive prices, which lead to a natural margin contraction in the first months of operation at the newly opened stores in these regions. The success of this strategy is reflected in the sales performance of the recently opened stores, which exceeded initial expectations.

Keeping the aggressive store-opening plan for 2013 and, as already mentioned in 1Q13, the Company in 2Q13 delivered three new Assaí stores - in Ceará, Mato Grosso do Sul and Paraná. In the first six months of 2013, six new stores were opened, of which five were the first stores in their respective states. These six new stores represent 33,160 square meters of sales area and 74,200 square meters of built-up area. In the last 10 months, Assaí doubled the number of states in which it operates, from six to 12.The inauguration of stores in new regions was concentrated in the first half and other eight stores will be delivered in the second half of the year.

The increase in operating expenses continues to lag behind revenue growth. The low-expense business model sustains the more competitive pricing strategy. Management believes that this model will bring operating expenses down to below 10% of net revenue in the medium term.

 

 

 

Page 26


 

 

Electronics and home appliances (Viavarejo bricks-and-mortar stores and Nova Pontocom)

 

  Viavarejo
  2Q13 2Q12 Δ 1H13 1H12 Δ
Gross Sales Revenue 6,936 6,075 14.2% 13,771 12,364 11.4%
Net Sales Revenue 6,062 5,318 14.0% 12,062 10,809 11.6%
Gross Profit 1,739 1,438 20.9% 3,403 2,966 14.8%
  Gross Margin 28.7% 27.0% 1.7 p.p. 28.2% 27.4% 0.8 p.p.
  Selling Expenses (1,139) (990) 15.1% (2,290) (2,011) 13.9%
  General and Administrative Expenses (162) (236) -31.3% (355) (480) -25.9%
  Equity Income 1 (0) - 3 0 2156.5%
  Other Operating Revenue (Expenses) (90) (2) 4276.0% (76) 13 -
Total Operating Expenses (1,390) (1,229) 13.2% (2,718) (2,478) 9.7%
  % of Net Sales Revenue 22.9% 23.1% -0.2 p.p. 22.5% 22.9% -0.4 p.p.
Depreciation (Logistic) 8 11 -31.0% 16 21 -24.6%
EBITDA 356 220 61.5% 701 509 37.8%
  EBITDA Margin 5.9% 4.1% 1.8 p.p. 5.8% 4.7% 1.1 p.p.
Adjusted EBITDA 446 222 100.5% 776 495 56.7%
  Adjusted EBITDA Margin 7.4% 4.2% 3.2 p.p. 6.4% 4.6% 1.8 p.p.

 

The operational improvement was coupled with the acceleration in sales. The business posted higher sales growth than in previous quarters. The 180-basis-point increase in EBITDA margin is due to the gain in gross margin, which increased due to a more efficient logistics and increased penetration of sale of services, as well as a reduction in selling, general and administrative expenses as percentage of net revenue.

Furthermore, EBITDA was negatively impacted by Other Operating Expenses and Revenues, which totaled R$ 90 million, mainly due to the adjustments recommended by external consultants especially hired to analyze the accounting entries related to the association between Pontofrio and Casas Bahia. Adjusted EBITDA margin, excluding  the effects mentioned above, would be 7.4% in the 2Q13, up 320 basis point over 2Q12.

The 160-basis-point decrease in selling, general and administrative expenses as a percentage of net sales revenue was due to the synergies captured with the Productivity Plan, mainly due to the greater rationalization of personnel, marketing and IT expenses.

As a result of the settlement agreement (Termo de Compromisso de Desempenho ‐ TCD) with Brazil’s antitrust agency CADE (Conselho Administrativo de Defesa Econômica), 74 stores are in the process of being divested, which together represent approximately 3% of Viavarejo’s gross sales in 2012, as mentioned in a material fact released on 04/17/2013.  The Company will keep its shareholders and the market informed about any developments related to the compliance with the TCD.

In 1H13, EBITDA totaled R$ 701 million, up 37.8% over 1H12. EBITDA margin increased 110 basis points to 5.8%. Adjusted by Other Operating Expenses and Revenues, EBITDA would be R$ 776 million, with margin at 6.4%. The Company reaffirms its EBITDA margin guidance above 6.6% in the year.

 

 

 

Page 27


 

 

Indebtedness

 

  GPA Consolidated GPA Food
(R$ million) 06.30.2013 03.31.2013 06.30.2013 03.31.2013
 
Short Term Debt (2,112) (2,577) (2,022) (2,239)
  Loans and Financing (1,083) (1,445) (1,005) (1,226)
  Debentures (1,029) (1,132) (1,016) (1,014)
Long Term Debt (4,545) (5,008) (3,733) (4,189)
  Loans and Financing (1,649) (2,014) (1,637) (1,994)
  Debentures (2,896) (2,995) (2,096) (2,195)
Total Gross Debt (6,657) (7,586) (5,755) (6,429)
Cash 5,060 6,002 2,707 3,553
Net Debt (1,597) (1,584) (3,048) (2,875)
Net Debt / EBITDA(1) 0.44x 0.42x 1.53x 1.24x
  Payment book - short term (2,463) (2,470) - -
  Payment book - long term (108) (115) - -
Net Debt with payment book (4,168) (4,168) (3,048) (2,875)
Net Debt / EBITDA(1) 1.16x 1.10x 1.53x 1.24x

Net debt, including Viavarejo’s payment book operation, totaled R$ 4.168 billion at the end of June. Maturities of loans, financing and debentures are still concentrated in the long term, of which 70% mature in over 12 months.

In 2Q13, net reserves were down by R$ 900 million for the purpose of debt payment, which decreased by the same amount. The net debt/EBITDA ratio stood at 1.16x on 06/30/2013. At the end of June, the Company had cash reserves close to R$ 5 billion. For more information, see the Cash Flow section.

 

Financial Result

 

  GPA Consolidated (ex. real estate projects) GPA Food
(ex. real estate projects)
Viavarejo
(R$ million) 2Q13 2Q13 Δ 1S13 1S12 Δ 2Q13 2Q13 Δ 2Q13 2Q13 Δ
 
  Financial Revenue 128 151 -15.2% 271 297 -8.8% 83 123 -32.9% 53 40 33.6%
  Financial Expenses (428) (436) -1.8% (825) (917) -10.1% (212) (244) -13.1%